A university student in Taiwan, identified only as Zhang, who underwent a double leg amputation aiming for a $1.3 million insurance payout, has been apprehended on suspicion of fraud, announced local prosecutors.
Zhang, 23, immersed his feet in dry ice for an extended period, following persuasion from his high school friend, Liao, also 23, to execute the insurance scam.
Liao, who suffered cryptocurrency trading losses, duped Zhang into signing a document obliging him to repay approximately $800,000.
As per investigators cited by local media outlet Taiwan News, Liao convinced Zhang that he was being pursued by gangsters.
On the night of January 26, 2023, Liao and Zhang rode a motorcycle around Taipei, intending to present Zhang as a victim of frostbite sustained while riding the vehicle late at night, investigators disclosed.
Shortly before this, Zhang purchased multiple high-value life, travel, and accident insurance policies, prosecutors stated.
After their motorcycle excursion, Zhang subjected his feet to dry ice and was subsequently admitted to the hospital, investigators revealed.
However, medical personnel grew suspicious during their assessment, noticing the absence of shoe or sock marks on Zhang’s legs and symmetrical injuries inconsistent with natural frostbite.
Prosecutors added that the weather on January 26 was far from freezing, with the lowest temperature around 42 degrees Fahrenheit.
Considering Taiwan’s subtropical climate, severe frostbite cases necessitating amputation are extremely rare due to natural conditions, stated the bureau.
Despite undergoing amputation below the calf due to frostbite injuries, Zhang’s case was reported to authorities, prosecutors confirmed.
During a November police investigation, authorities discovered the plastic bucket used for freezing Zhang’s feet, insurance documents, a white polystyrene box for dry ice, eight mobile phones, and a tablet computer, according to the investigations bureau.
Both Liao and Zhang were arrested on January 17 and face charges of fraud and aiding and abetting serious injury, the bureau confirmed.
Reportedly, Zhang attempted to claim $7,200 from one insurer, but this amount will be confiscated, according to prosecutors.
Insurance fraud rates have seen an increase post-pandemic, as reported by some insurers and authorities.
The Insurance Fraud Enforcement Department of the City of London Police noted a 61% surge in reported cases of opportunistic fraud from March 2022 to April 2023, with Chief Inspector Tom Hill suggesting that rising living costs may prompt individuals to contemplate insurance fraud.
In February, South Korea enhanced its insurance fraud prevention law to impose stricter penalties, including up to 10 years in prison or a $37,000 fine.
The FBI estimates that an annual $400 to $700 from the average US family’s insurance premiums contributes to covering the costs of insurance fraud.
